A major Taiwanese stainless steel maker is upgrading its facility. Yieh United Steel (Yusco) has begun a key project. It involves rebuilding a heating furnace and maintaining its hot-rolling line. This work requires a temporary production halt.

To ensure steady supply, Yusco is partnering with China Steel (CSC). CSC and its subsidiaries will provide hot-rolling services during this period. This is crucial for maintaining the supply of material for custom stainless steel tubing.

1. Specialized Partnership During Upgrades

The cooperation is expected to last until March 2026. The work is divided based on expertise.

CSC and Chung Hung Steel will handle stainless steel. They have extensive experience in rolling stainless slabs.

Chung Lung Steel will process carbon steel.

This smart regional分工 (division of labor) minimizes logistics costs. It ensures Yusco can continue shipments to its clients, including stainless steel pipe fabricators.

2. CSC’s Proven Track Record in Steel Rolling

China Steel is not new to this service. It has a mature business in providing rolling services to peers.

It has long rolled slabs for Tang Eng Iron & Steel.

Its subsidiary, Chung Lung Steel, also provides rolling for Walsin Lihwa.

This cooperation highlights the flexibility of Taiwan’s steel industry. Yusco is the island’s only fully integrated stainless sheet mill. It handles everything from steelmaking to cold rolling.

Yusco had faced market pressure, reporting a net loss in the first half of 2023. In a weak global market, this upgrade and collaborative model shows how Taiwanese firms are working together. They are optimizing resources to navigate challenges.

Stable Supply for Specialized Manufacturers

This strategic move ensures a consistent flow of raw materials. For buyers and custom stainless steel tubing manufacturers, this collaboration minimizes potential supply chain disruption from a major producer. It demonstrates a commitment to stable supply even during necessary operational upgrades.

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